STAND. COM. REP. NO. 1554
RE: H.B. No. 540
Honorable Donna Mercado Kim
President of the Senate
Twenty-Eighth State Legislature
Regular Session of 2015
State of Hawaii
Your Committee on Ways and Means, to which was referred H.B. No. 540, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII ACCOUNTING AND FINANCIAL MANAGEMENT SYSTEM,"
begs leave to report as follows:
The purpose and intent of this measure is to extend the authority of the University of Hawaii to maintain a separate accounting and financial management system that is compatible with the State of Hawaii accounting and financial systems.
Your Committee received written comments in support of this measure from the Department of Education and the University of Hawaii.
Your Committee finds that Act 321, Session Laws of Hawaii 1986, among other things, granted the University of Hawaii authority to implement its own accounting system, in conformity with generally accepted accounting principles as applied to colleges and universities. Pursuant to this authority, the University of Hawaii developed and has been using its own financial management system, the most recent version of which is the Kuali Financial System. Your Committee notes that the Kuali Financial System, which was developed with and is supported by a consortium of universities, accommodates the unique reporting, regulatory, and accreditation needs of the University of Hawaii, while also providing the compatibility necessary to fulfill the reporting requirements of the Department of Accounting and General Services.
Your Committee also finds that the amendments made to sections 40-1(b), 40-2, 40-4, 40-6, 40-58, and 40-81, Hawaii Revised Statutes, by this measure do not conflict with amendments made to those statutes by House Bill No. 1412, H.D. 2, S.D. 1. If both of these measures are passed by the Legislature during the Regular Session of 2015, the Revisor of Statutes will be able to harmonize the amendments made to those sections of law by both measures.
Your Committee has amended this measure by:
(1) Changing the effective date to June 29, 2050, to facilitate further discussion on the measure; and
(2) Making technical nonsubstantive amendments for the purposes of clarity and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 540, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 540, H.D. 1, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
JILL N. TOKUDA, Chair